Health insurance purchase doubles between March and May

A recent survey on consumer sentiment conducted by the Indian insurance aggregator Policybazaar.com has found that the awareness of life and health insurance cover has increased as a result of COVID-19.

The survey found that people seem well in control of their financial health but are extremely worried about the risk to their own and their family’s physical health. As a result, the perception of the importance of health and life insurance is now higher than ever.

According to the survey, 51% of respondents considered having an insurance cover important while nearly 80% said they were aware of the benefits of insurance especially during a pandemic.

Unlike in the past, insurance has now become a product that consumers are likely to buy without the need for a big sales push. Health insurance purchases doubled between March and May this year compared to the same period in 2019.

Policybazaar.com CEO Sarbvir Singh said, “This study clearly points towards both term life and health insurance starting to become a cornerstone of personal financial planning in times of COVID-19. The pandemic has definitely accelerated awareness about insurance in India where insurance penetration remains low even today."

This online survey was conducted to understand consumer sentiment towards household finances, investments and insurance during the COVID-19 pandemic and it surveyed 14,624 Policybazaar.com users.

Only 15% of the respondents said they were worried about a cash crunch. On the job security front, only 19% respondents indicated any anxiety about retaining their employment. Nearly two in three respondents were confident of their household expenses remaining stable and manageable over the next 12 months, it further found.

Source: Asia Insurance Review